(Alliance News) - Airtel Africa PLC has secured a new USD500 million loan facility with a group of relationship banks, it said on Wednesday.
The telecommunication services provider said the new committed facility consists of a combination of a revolving credit facility and term loans with tenor of up to 4 years. The facility will be used to partially refinance the group's EUR750 million denominated bond due next month.
"The new loan facility further strengthens the core liquidity of the group," Airtel Africa commented.
"It also has prepayment flexibilities that will allow the group to optimise the efficiency of its capital structure with the free cash flows and cash receipts anticipated over the next 12 months."
Airtel Africa said banks which participated in the facility include Bank of America, BNP Paribas, Citibank, HSBC, JP Morgan, Standard Chartered Bank and two Indian relationship banks, Axis Bank and Kotak Mahindra Bank.
Airtel Africa is based in London and operates air in 14 African countries,
Shares in Airtel were trading 1.1% higher at 72.15 pence in London on Wednesday. The wider FTSE 250 index was up 0.2%.
By Will Paige; willpaige@alliancenews.com
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Airtel Africa (AAF)